Question: using the balance sheet to explain the journal entry line by line A Ltd has acquired all the issued shares of B Ltd for $150.

using the balance sheet to explain the journal entry line by line

A Ltd has acquired all the issued shares of B Ltd for $150.

The balance sheets of both companies immediately after acquisition are as follows:

A Ltd B Ltd

Share capital $200 Share capital.$100

Reserves100 Reserves50

300 150

Shares in B Ltd 150 --

Cash 150 Cash 150

300 150

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